China urges Netherlands to fix Nexperia issues and eliminate barriers
On Wednesday, China’s commerce ministry delivered a pointed criticism to the Netherlands, calling on it to correct its “mistakes and remove obstacles” that are affecting the global semiconductor supply chain, as reported. China asserted that the Dutch government has failed to act responsibly and continues to engage in actions that jeopardize the stability of global chip production and supply. The report indicates that China has asserted that the Netherlands has overlooked multiple concerns raised by Beijing and has not made any substantial efforts to rectify the situation. Beijing asserted that Dutch decisions have disrupted the normal functioning of the semiconductor supply chain, affecting companies and markets worldwide.
The conflict centers on Nexperia, a Dutch semiconductor manufacturer currently owned by Wingtech, a company based in China. In September, the Dutch government took over Nexperia. The Netherlands emphasized that the action was crucial to stop the company’s founder from transferring sensitive technology and production capabilities to China. China voiced its firm disapproval of this action, asserting that it represented an inappropriate intrusion into the internal matters of a private company. In response, Beijing blocked the export of Nexperia’s chips, many of which are packaged in China, leading to further supply disruptions.
According to a source, Dutch Economic Affairs Minister Vincent Karremans has reaffirmed the decision to intervene in Nexperia’s operations. During a recent media interview, he remarked, “the move was not enjoyable but was necessary in the interest of national security.” Earlier this month, China announced that it had actively facilitated discussions between Wingtech and Nexperia to address the ongoing dispute. Beijing has revealed that Wingtech has invited Nexperia’s independent directors and its equity trustee to visit China for discussions about company control and the restoration of supply chain stability. China has urged the Dutch government to honor prior agreements and support the facilitation of the visit through its embassy in Beijing.
According to China’s commerce ministry, the issue arose due to the Dutch government’s excessive interference. The Dutch Ministry of Economic Affairs faced calls to withdraw its administrative order, aimed at persuading former Nexperia executives to drop their legal actions in a Dutch court, and to create conditions conducive to advancing internal company discussions. Delegates from both countries participated in two rounds of in-person talks in Beijing on November 18 and 19. In these meetings, China maintained that the actions of the Dutch were the main factor behind the current disruption in chip supply chains. The Dutch side has previously expressed its readiness to suspend the administrative order of the economic affairs minister under the country’s Goods Availability Act, indicating possible advancement in addressing the dispute.
